Your company is an all-equity firm with 300,000 shares outstanding. The company's EBIT IS $2,500,000, and EBIT is expected to remain constant over time. The comparw pays out all its earnings each year, so its earnings per share equal its dividends per share. The corporate income tax rate is 40%. The risk-free rate in the economy is 2%, and the market risk premium is 5%. The company's beta is currently 1.00 The company is considering issuing $7.0 million worth of perpetual bonds (at par) and using the proceeds for a stock repurchase. If issued, the bonds would have an estimated yield to maturity of 2 percent (and that would be the annual coupon rate as well). The usual timeline will be followed: (1) the announcement is made that the form will recapitalize, (2) the market price of the stock changes in anticipation of the recapitalization, (3) the debt is issued, and (4) the shares are immediately repurchased at the anticipated price. What is the new equity beta after the entire transaction is complete? 1.162 O 1.266 1.222 01.244 o 1.202